Q1 2025: Navigating the Digital and Analog Semiconductor Industry Landscape

How will emerging trends impact the semiconductor market in 2025?

As of April 8, the median semiconductor stock is 32% undervalued while the median analog stock is 41% undervalued. Digital stocks continue on an undervaluation trend since the previous quarter, standing at a 23% discount.

Morningstar’s latest Digital and Analog Semiconductor Industry report highlights the demand for artificial intelligence (AI) and accelerators —a shift particularly led by Nvidia’s data center graphics processing units (GPUs), which is expected to continue throughout the rest of 2025. Explore our analysts’ predictions based on the AI GPU market, as well as the stubborn downturn of industrial chip demand with consideration to weakening global macroeconomic factors, and the stalled electric vehicle (EV) semiconductor sector. The report also addresses potential economic pressures the semiconductor industry faces as tariff uncertainty lies ahead.

Download the report now to learn more about key trends in this evolving industry.